BIDV is recognised in the field of sustainable finance

DNHN - BIDV has been honoured with two awards: “Best Issuer for Sustainable Finance in Vietnam 2024” (Best Sustainable Issuer in Vietnam) and “Best Green Bond in Vietnam 2024” (Best Green Bond Transaction in Vietnam).

These are awards in the Sustainable Finance category of The Asset magazine’s (Hong Kong) Triple A Awards system.

The awards recognise the pioneering spirit, high level of creditworthiness, and reputation of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) in the capital market when it successfully issued 2,500 billion VND of bonds following the Green Bond Principles of the International Capital Market Association (ICMA), making BIDV the first bank to issue green bonds following international principles in Vietnam.

BIDV’s bond issuance is also the first green bond issuance in Vietnam with an unsecured structure, no subordinated debt, and no payment guarantee, demonstrating the high level of creditworthiness and reputation of the issuing organisation. BIDV’s Green Bond Framework has been independently assessed and rated SQS2 (very good) by international rating agency Moody’s, confirming BIDV’s high level of compliance and transparency in issuing and managing bonds after issuance, ensuring that the proceeds of the green bonds are used for the committed purposes.

At the COP 26 Conference, Prime Minister Pham Minh Chinh committed that Vietnam would achieve net zero emissions by 2050. To implement this commitment, the Government has issued the National Strategy for Green Growth for the period 2021-2030, with a vision to 2050. In the trend of green development globally and nationally, BIDV believes that Green Bonds will be a necessary capital channel with great growth potential in Vietnam to support the provision of sufficient investment capital for businesses, especially foreign capital. Therefore, BIDV has been keen to focus on researching and issuing Green Bonds. BIDV has a clear strategy for developing green banking and green credit, related to the requirement to promote green credit growth and manage environmental, social & governance (ESG) risks in lending activities and is ready to finance customers operating in sectors with low carbon emissions and adapting to climate change. Green bond capital will be an effective tool to increase the ability to implement the above strategy. BIDV expects that the pioneering issuance of green bonds following international standards will inspire other organisations to join in building a green, strong, and sustainable future.

Not only is it a pioneering financial institution in deploying new and modern financial products, but BIDV is also a leader in creating and developing the domestic bond market. BIDV is a leading bond issuer in the market, with a total issuance volume of nearly 115,000 billion VND in the period 2018-present. In addition to the two awards mentioned above, BIDV has also been awarded Best Issuer and Best Bond Issuance Advisor in Vietnam by many prestigious international magazines such as FinanceAsia, The Global Banking and Finance, etc.

Nguyen Tin